Name______

Michigan Automobile Insurance

Directions: Use this link to answer the following questions about Michigan auto insurance.

  1. What three specific things does a Michigan no-fault policy provide?
  1. In exchange for these benefits, Michigan motorists give up the right sue in auto accidents except for what situations?
  1. If you own a car without no-fault insurance and have an accident you can be ______and held personally liable. You may have to pay a lawyer and court costs, and you would not be paid for ______expenses, ______loss, loss of services, or any other no-fault benefits.
  1. Basic no-fault policies have three parts:
  • Personal injury protection (PIP) – pays all necessary medical costs if you are hurt in an auto accident. Also pays up to a maximum amount of wage you would have ______if you hadn’t been hurt up to ______years. If you are killed, you policy will pay your family up to the monthly amount for three years.
  • Property protection (PPI) – pays up to ______for damage you car does in Michigan to other people’s ______.
  • Residual bodily injury and property damage liability insurance (BI/PD) – pay for your ______costs and any damages you are found liable for as a result of an auto accident, up to limits of the policy.
  1. What do the numbers in the basic coverage of 20/40/10 mean?
  1. What doesn’t basic no-fault pay for?
  1. In addition to basic no-fault, you may want to purchase collision coverage with pays to ______or ______your vehicle if it is damaged in an accident. This coverage is available with or without a deductible which is an amount you agree to pay toward the costs of the repair ______the insurance company steps in and pays the rest.
  2. Comprehensive coverage pays if your car is stolen, collides with an ______or is accidently damaged by falling objects, ______, flood, and vandalism.
  3. What six things is your insurance rate based on?